Apart from assets, what other things can be used as collateral?

[Fidelia]

When it comes to collaterals to secure funding, lending institutions always prefer assets to be used as collaterals. Are there other things apart from assets that can serve as collateral to secure funding?!

 

[Min George]

Some people use intellectual property as collateral. Some rich people use future earnings as collateral.

 

[eLdavis]

While assets is usually the most common thing used, besides this there are other things like savings accounts or future paychecks can also be used.

 

[Augusta]

It is the most common property type that lenders accept as collateral for a loan against property. You can pledge any residential property as security to avail a loan.

 

[Stardom22]

ln most cases here in my country the banks allow borrowers to use other account holders for the same bank as guarantors. Such that in case of a default, the guarantors can take care of the loan.

 

[Starmix]

Advance check deposits reflecting the value of the loan and it's monthly interest as per computation of the bank serves as assurance that the debtor or loaner can pay. However, make sure to deposit the amount as monthly payments to the bank where you applied for a loan. Failure to deposit is crucial.

 

[Suba]

Assets consist of two types: tangible and intangible. Therefore, deposits, savings, checks, crypto, intellectual property (copyrights, and patents) are also considered assets. So, besides assets, trust can also be used as collateral.

 

[Augusta]

intangible assets like intellectual property, contracts, and even future earnings can sometimes be used as collateral, depending on the lender and the type of loan.